[French government bond risk indicators hover at high levels, and the premium over German bond yields once exceeded 150 basis points] October 20th, an indicator measuring French bond risk broke through a key level on Tuesday. The yield premium of 10-year French government bonds relative to German government bonds of the same maturity exceeded 150 basis points to 154 basis points, the largest since October 2. Earlier this month, the spread reached 159 basis points as political and fiscal pressures intensified, prompting many investors to liquidate their positions in French government debt. Due to the high cost of living, large-scale protests broke out in France last weekend, and public buildings, shops and restaurants were attacked in many places. The protests have largely subsided after authorities introduced tighter security measures, including a curfew. France's debt burden exceeds gross domestic product (GDP) and its budget deficit is one of the largest in the euro zone, meaning the government cannot simply increase spending to please voters. Some investors are speculating whether the European Central Bank will take action to stabilize bond markets. However, the market generally believes that policymakers are not willing to intervene and they will prefer to let market forces force France to carry out the structural reforms needed to improve its fiscal situation.